Question :

Cato Electronics is a manufacturer of data storage devices. Cato consists of two service departments (maintenance and computing) and two production departments (assembly and testing). Maintenance costs are allocated on the basis of square footage occupied, and computing costs are allocated on the basis of the number of computer terminals. The following data relate to allocations of service department costs: Maintenance Computing Assembly Testing Service department costs $585,000 $969,000 Square footage 97,680 50,320 Terminals 28 72 Allocate the service department costs to production departments using the direct method. (Round allocation percentage to 2 decimal places, e.g. 15.36% and final answers to 0 decimal places, e.g. 15,252.) Allocation of cost Service depts. Assembly Testing Maintenance $ Computing Total Click if you would like to Show Work for this question: Open Show Work